Lodestar Minerals (ASX:LSR) is looking to raise up to $1.5 million through a one-for-two entitlement offer in a bid to meet its working capital requirements.
Under the offer, eligible shareholders in Australia and New Zealand may purchase one share at $0.0015 for every two shares already held. Each new share will come with one free option, exercisable at $0.003 until 30 June 2026.
The offer opens on 14 June and will close on 5 July 2024.
Lodestar directors may extend the closing date by giving at least three business days notice to the ASX, prior to the closing date.
According to its March quarter report, published on 26 April, Lodestar had $149,000 in cash and cash equivalents at hand, equating to 0.21 quarters worth of funding.
“Exploration expenditure is a cost that fluctuates from quarter-to-quarter dependent on the level of operations for the quarter and cash availability,” Lodestar said at the time.
“During the first half of FY24 the company had embarked on a drilling campaign alongside an extensive soil sampling campaign. The drilling campaign was concluded in December 2023, with costs being settled in January 2024.
“The exploration activities for H2 of FY24 have decreased as the company assesses its follow-up exploration activities and has been delayed by weather events.”
However, Lodestar enjoyed a substantial cash injection in April, selling 5 million shares in Future Battery Minerals (ASX:FBM) for $275,000. Lodestar has another 14.3 million shares in Future Battery at its disposal.
Lodestar Minerals is an active explorer focused on its wholly owned Earaheedy Project, which lies in one of Western Australia’s most underexplored and prospective base metal provinces.
Write to Aaliyah Rogan at Mining.com.au
Images: Lodestar Minerals
